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'Cum' dividend and 'ex' dividend
 

 

When the price of a share s quoted it is quoted 'cum div' or 'ex div'. This indicates that the price includes or does not include the right to receive the next dividend. Quotations are normally 'cum div', i.e. the buyer receives the next dividend. 'ex div' prices are generally given only for the period (e.g. one month) immediately before the payment of the dividend. When a share goes 'ex div', the price naturally drops rather suddenly.

Reference: The Penguin Business Dictionary, 3rd edt.